Nandan Denim profit rises 31.8% in Q1 despite 40.6% revenue drop
Nandan Denim reported Q1 net profit of ₹14.80 lakh, up 31.8% year-on-year, while revenue from operations fell 40.6% to ₹622.39 lakh. The company has also invested ₹4 crore for a 6.1% stake in Opera Vayu to source captive wind and solar power.
What happened
Nandan Denim’s shares rose 6.71% after Q1 results showed net profit growth despite a 40.6% revenue decline. The textile company also invested ₹4 crore for a
Key facts
- NSE/BSE share price ₹3.02, up 6.71%
- Market capitalisation ₹435.32 crore
- Q1 net profit ₹14.80 lakh, up 31.8% YoY
- Revenue from operations ₹622.39 lakh, down 40.6% YoY
- Total expenses ₹614.50 lakh, down 40.6% YoY
- Profit before tax ₹10.32 lakh
- Tax credit ₹5.07 lakh
- Basic EPS ₹0.10 versus ₹0.08
- Other income ₹2.43 lakh, up 57.8%
- ₹4 crore investment for 6.1% stake in Opera Vayu
- 40,02,096 equity shares acquired
Why this matters
The ₹4 crore Opera Vayu stake gives Nandan Denim access to captive wind and solar power, creating a strategic hedge against energy costs and supporting ESG positioning.
What to watch
- Sequential revenue growth and whether the sales decline narrows in the next two quarters.
- Gross margin, EBITDA margin, and operating-cost trends versus the prior year.
- Capacity utilization, order backlog, and inventory days.
- Receivables growth, operating cash flow, and debt/interest-cost movement.
- Opera Vayu project progress, renewable-power commissioning, and disclosed savings per unit of electricity.
- Cotton, yarn, dyeing, and grid-power price movements.
- Changes in denim demand, apparel retail sell-through, and export order conditions.
- Prioritize higher-margin denim grades, value-added fabrics, and customer segments rather than pursuing volume through discounting.
- Tighten receivables, inventory, and production planning to protect cash flow during lower utilization.
- Disclose the expected commissioning timeline, power offtake structure, and estimated annual energy-cost savings from the Opera Vayu investment.
- Assess whether additional renewable procurement or captive-power investments can be funded without pressuring working capital or leverage.
- Monitor demand recovery across domestic apparel brands, export customers, and seasonal order books before expanding capacity.